Feb
18th
Thu
18th
Japan 2.0
Uber-deflationista and bond bull Dave Rosenberg has this interesting piece of data in his “Breakfast with Dave” newsletter:
Have a look at the household balance sheet:It seems like we are really in Japan 2.0. With the exception that Japan 1.0, the original one, might actually blow up in the mean time.What do households own in Treasury notes and bonds? Try $800 billion.
- Households own $18.2 trillion of residential real estate, even after the value destruction of the past three years.
- Households own $18.1 trillion of equities, despite the vicious bear market.
- Households own a near-record $7.7 trillion of deposits and cash — earning next to nothing in yield.
- Households own $4.6 trillion of consumer durable goods.
- Households own $3.5 trillion of corporate bonds and municipal/agency paper.
